- What is Simple Interest?
- Simple Interest is calculated only on the principal amount. The formula is: SI = P × R × T, where P is Principal, R is annual interest rate (%), and T is time in years.
- What is Compound Interest?
- Compound Interest is calculated on both principal and accumulated interest. The formula is: A = P(1 + r/n)^(nt), where P is Principal, r is annual rate, n is compounding frequency, and t is time in years.
- How does compounding frequency affect interest?
- Higher compounding frequency (e.g., monthly vs. yearly) results in more interest earned over time because interest is calculated and added to the principal more frequently.
- Which is better: Simple or Compound Interest?
- For investors/lenders, Compound Interest typically yields higher returns as it earns interest on previously earned interest. For borrowers, Simple Interest results in lower total payments.
- How accurate is this calculator?
- Our calculator uses standard financial formulas and provides precise calculations for both Simple and Compound Interest. Results are rounded to 2 decimal places for clarity.
- How to calculate fixed deposit returns with quarterly compound interest?
- Enter your fixed deposit amount as principal, the annual interest rate, select quarterly compounding frequency, and your deposit term. Our calculator will show exact returns including the power of quarterly compounding.
- What is the best savings account interest calculator with daily compounding?
- For savings accounts with daily compounding, use our calculator with the daily compounding option. Enter your average balance as principal and your bank's annual interest rate to see how your money grows day by day.
- How to compare different mutual fund returns with compound interest?
- Enter each fund's initial investment amount and historical return rate. Select annual compounding to compare long-term growth potential. Our calculator helps you see the difference in returns over your investment horizon.
- What's the difference between APR and APY in interest calculations?
- APR (Annual Percentage Rate) is the simple interest rate per year, while APY (Annual Percentage Yield) accounts for compounding. Use our calculator to see how the same APR gives different yields based on compounding frequency.
- How to maximize retirement savings with compound interest calculator?
- Enter your current savings as principal, monthly contribution amount, expected return rate, and retirement timeline. Compare different compounding frequencies to see how to maximize your retirement nest egg.